Posts by Seline Chen
Electronic Contract Manufacturers In China: What To Know
Electronic contract manufacturing services play an important role in the electronics industry.
However, choosing a reliable electronic contract manufacturer in China can be daunting; with over 30,000 manufacturers listed on Alibaba alone, it’s hard to know which one is truly capable of handling your project.
If you are looking to build an electronics business from the ground up, knowing what to look for in an EMS manufacturer can save you time and money in the long run. Here are some tips to help you choose the right electronic contract manufacturer for your business.
What is Electronic Contract Manufacturing?
Electronic contract manufacturing (ECM), also known as EMS (electronic manufacturing service), refers to a variety of manufacturing services that mainly focus on the electronic industry.
The services include engineering design, PCB fabrication, subassembly manufacturing, turnkey or box builds, functional testing, distribution and order fulfilment.
It allows you to outsource the production of your electrical products to EMS providers instead of setting up your internal assembly line, allowing you to focus on designing and marketing your product.
Electronic contract manufacturing may be utilized as either a supplement to or as a replacement for company-owned manufacturing operations. However, choosing an EMS can be tricky. So you must make sure they have an adequate amount of experience with your particular industry and type of product.
What Should You Consider?
There are lots of players offering EMS and electronics manufacturing services today. That’s why you need to compare them to get what is right for your business.
When choosing an EMS manufacturer, your primary considerations should be quality and cost.
Quality is always important. It’s especially critical when dealing with electronics because any mistake made in production could end up making your product unusable or even dangerous.
If you have a consumer-focused product and are planning on selling tens of thousands of units, quality is likely more important than price.
It’s also important that your EMS partner is capable of keeping up with production demands and able to handle customization requests to meet their lead time and standard requirements. An experienced EMS provider will be able to assist you in developing these capabilities throughout their supply chain.
What Do They Offer?
Find out if the electronic contract manufacturing company in China has a wide variety of experience in your product category and find out what certifications they have.
Not only will it help them be an expert on your product, but it will also reassure you that they’re capable of doing what you need to. This is especially important if your business involves developing products or if you’re working with new technology.
Additionally, an electronic manufacturing service company likely provides several levels of service. However, for each level of service, there are some ways in which they can vary in providing it.
Different EMS providers may have different capabilities. A key factor in determining how well an EMS provider will meet your needs is understanding what they do and what they don’t do. Generally speaking, EMS providers will offer at least one of three basic levels of manufacturing services: design service, fabrication service or a combination thereof.
Benefits of Electronic Contract Manufacturers In China
There are several reasons why you should use electronic contract manufacturers in China, instead of manufacturing your products.
First and foremost, it will save you money. PCB assembly can cost anywhere from $0.50 – $1.00 per unit in China while it costs more than 10 times that amount in North America or Europe. Offshore manufacturers also allow businesses to save money by providing bulk orders that could be too costly otherwise.
Second, it’s a good way to speed up your time to market by using their long-term experience. A well-established EMS manufacturer can help design and produce a finished product from scratch within months. In this case, you don’t have to build your in-house engineering and design team to create whatever you want.
In addition, outsourcing your electronics production enables you to focus on core competencies that make your business profitable; no need to invest in expensive equipment or struggle with issues such as sourcing parts overseas.
Last but not least, some ECM companies in China offer more services than others—from design to production and shipment—which means that you don’t have to hire additional staff members or pay extra fees.
How To Choose An Electronic Contract Manufacturer?
Working with a Chinese EMS can save you money, but it’s important to remember that Chinese EMSs are not all created equal. Do your research and ensure that any suppliers you choose are legitimate and reliable.
You should choose a manufacturer with top-notch capabilities, great communication skills and a good reputation to guarantee your product will be a success.
When you want to partner with an electronic contract manufacturing company in China, come to Shield Works. Our experienced team helps to keep your project moving smoothly and efficiently. With our British management background and long-term manufacturing experience, we firmly believe in our proven process and expertise. We take the responsibility of protecting you from all manufacturing defects. Contact us to discuss your project today!
The Future of OEM Manufacturing
COVID-19 affected many people’s lives physically, mentally, emotionally, and financially. This also affected several different businesses, causing them to halt their production. Fortunately, even though the pandemic still lingers, there are many OEM manufacturing companies that can still meet the demands and needs of many customers.
If you’ve ever considered working with an OEM manufacturing company, but you aren’t sure how that relationship will look due to the market’s changing trends, you aren’t alone. Many different companies are turning to OEMs to help with their production needs to keep up with product quality demands. If you want to learn more about OEM companies and how they can benefit your company in today’s changing landscape, continue reading below.
What Is OEM?
An Original Equipment Manufacturer, also known as OEM, is a company that produces and sells parts of a product or products for a particular company. That company then takes those parts of a product or complete product and sells it to their clients. OEMs commonly operate in the computer and auto industries.
An original equipment manufacturer often works directly with a retail company. For example, Lenovo’s computer parts aren’t all manufactured by Lenovo themselves. Instead, Lenovo utilizes a manufacturing company to create their processors.
Examples of OEM
To better explain how an original equipment manufacturer works, let’s use Company D as an example. Company D manufacturers several different versions of a memory card to sell to various computer manufacturers or retailers, like Lenovo or Dell. Those companies are considered value-added resellers who will sell their version of the product to their clients.
OEM vs. Value-Added Reseller
Value-added resellers, also known as VARs, sell products from the OEM, but they also incorporate certain added features before doing so. The two companies benefit from one another because VARs help original equipment manufacturers sell their products.
OEM vs. Aftermarket
While an OEM produces original equipment, an aftermarket manufacturer creates products that are made to look like and work with those of an OEM. To simplify, aftermarket parts or products are not original because different companies manufacture them.
Some of these aftermarket companies are locally based, whereas others are foreign-based. Although these parts are cheaper, they don’t have the same guarantees that an OEM part or product would.
How to Make Aftermarket Parts
As we all know, as time passes and technology advances, well-known auto companies, and technology companies release updated versions of their products. Most auto companies update their vehicles at least once every six years, and phone manufacturing companies change almost every year or two. So what happens to those old models and machines used to create those products?
These companies sell them. Many manufacturers purchase those old molds and models to create similar products to market.
Example of Aftermarket Products
You commonly see aftermarket parts in the auto industry. Auto shops and insurance companies prefer to use aftermarket parts over OEM parts whenever someone gets into an auto accident and needs their vehicle fixed. This is because aftermarket products are cheaper to manufacture and purchase.
Characteristics of an OEM
If you want to know if a company is an original equipment manufacturer, there are a few characteristics to look out for. For example, OEMs sell licenses which means they typically sell their product licenses to the resellers they market to.
Hardware
You can easily purchase hardware off the internet through an OEM or a retail product manufacturer. However, the OEM hardware typically is shipped without cables or adapters necessary for the installation and operation of said hardware.
Software
OEM software isn’t very common, but there are OEM software products. Some of the OEM software products created are versions of Windows productivity software, operating system, and security applications. This licensed software typically does not come with technical support, but it is instead provided with basic documentation and a few logos.
Most of these products are created for specific machines. For example, an OEM Windows system for an HP computer won’t operate the same on Dell or Lenovo. Even more so, that certain software may work for one specific HP model, but it won’t perform the same on other models.
Benefits of Original Equipment Manufacturers
There are several different benefits of using an OEM manufacturers in china. For example, when working with an OEM, you can expect a quick response time because less time is required to identify and produce the parts you need. Most manufacturers you work with like to have their products assembled and sent to you within a timely manner.
Quality
When replacing a part on a machine or a vehicle, you will want to have the utmost confidence that the replacement part is the same, if not better, than what was there before. The only way to secure this confidence is to use an OEM. When using an OEM manufacturing company, they will ensure that your products or parts of a product are created and tested to match your original specification.
Support
When approaching OEM support engineers, you will want to be reassured that those engineers have access to the same engineering team that designed your products or parts. Most, if not all, OEM support engineers do have that access, which will provide you with a wide variety of engineering and technical support. OEM staff members are pretty knowledgeable, and they can help you with all your part needs.
Value and Lifespan
When replacing parts in your products or machines, you expect that you will continue to get the same performance you had before needing the replacement. Buying from an OEM manufacturing company ensures that your replacement part will have that same quality, and there will be no degradation in performance.
Warranty
Having a warranty is one of the most important benefits when working with any OEM manufacturer. Should your company receive your parts with any defects, or if the parts are faulty, you can always reach out to your OEM. They will make sure to make it right so that you aren’t stuck with unusable products.
High Return on Investments
Since the parts your OEM supplies are designed to perform and fit factory specifications, these parts increase the life of your product. In the long run, this can save your business a lot of money and help reduce downtime.
Current OEM Trends
The relationship between OEM companies, dealerships, and other companies has always been healthy and symbiotic. Most OEMs depend on their networks to sell and service their products.
On the other hand, these companies have fallen back on OEMs to provide specific components or parts. In the auto industry, original equipment manufacturers also have the task of financing their servicing activities while the cars are covered under warranty.
Updates to the Market
Most OEM companies are now working towards creating remote software upgrades and establishing direct relationships with their clients with subscription models. With that said, this means that OEMs are taking ownership of customer relations which usually falls back on the dealers, or as you now know, VARs.
The dealers still get a significant portion of profits from after-sales and services. Activities like new car sales or new product sales can also create a profit, but the margin is relatively small.
What Does This Changing Landscape Mean?
Consumer demands of the auto industry are changing. Apart from the shift in needing or wanting more electric vehicles, cars are now viewed as a part of a shared mobility service. Models of car ownership are changing as well, meaning that customers now view their cars like smartphones. These clients expect their vehicles to be updated and refuse to pay a premium for a service that offers benefits down the line.
OEMs are currently working on creating capabilities that reduce cost due to connected diagnostics, predictive maintenance, and over-the-air software updates. They are also seizing more opportunities for direct relationships with consumers, such as creating innovative techniques to sell cars.
Customer Trends and the Marketplace
As technology continues to advance and the way we work and live continues to change, customers are doing things more online. To support dealerships, OEM manufacturing companies have to consider the value they add.
As mentioned earlier, OEMs are set to take greater ownership of customer relationships, but they should provide additional support to dealerships to ensure they don’t just disappear altogether.
To help with this, OEMs can incentivize dealerships to drive traffic to online showrooms, or they can reward dealerships for high brand engagement.
How to Find an OEM Manufacturer
When looking for an OEM, you will want to ensure that they have experience making products similar to yours. For example, an OEM who specializes in computer parts may not have the same capabilities for creating auto parts. You also must consider if you want to use a factory in the United States or overseas. Most OEMs who have better capabilities are overseas, not in the United States.
Domestic vs. Overseas
Manufacturing in the United States has its benefits, but it also comes with a few disadvantages. With an OEM in the U.S., you have more control over production; you can also visit the site regularly and avoid dealing with international shipping logistics.
Although that may sound ideal, you will most likely have to pay more for parts and labor. With overseas manufacturing, you still have a say in your product specification, but the cost to the manufacturer is much cheaper.
Even though dealing with international shipping logistics may sound like a headache, it won’t be when you partner with the right company. They will make sure to have a dedicated contact who can speak your language and explain the entire process to you.
Review Their Certifications
Not all manufacturers in China are the same, nor do they have the same qualifications. No matter how well-established the plant is, there is a possibility that they don’t have the necessary licenses or certifications.
To ensure that your manufacturer creates your product in compliance with regulatory standards, make sure that your supplier has the proper licenses and certifications to assemble your product.
Common ISO certifications manufacturers should have:
- ISO 14001: Environmental Management
- ISO 9001:2015: Quality Management Systems
- ISO 45001:2015: Occupational Health and Safety
Each industry has its own certifications, so each manufacturer needs to have the same certificates and documents to ensure they produce high-quality products. Before working with a specific manufacturer, make sure that you check the required materials for assembling.
Capacity
The last thing you want is to work with a manufacturer who doesn’t have the capacity to manufacture your parts or products. You wouldn’t want to send your money and products to a company just for your products to be stuck on a shelf awaiting their assembly.
To ensure that you don’t get stuck with a company that doesn’t assemble or manufacture your products as fast as you need, make sure you check in with your manufacturer’s production space. The OEM should provide you with information about their current output rate and deadlines.
Produce High-Quality Products
Partnering with a reputable OEM manufacturing company is critical to make sure that your business meets the demands of your clients and ensures long-lasting performance and high-quality products. Working with a reputable OEM manufacturing company is more than just finding someone reputable and knowledgeable; it is about creating a stable relationship.
You want to make sure that the company you work with values you and your business just as you do. Contact us now if you are ready to create a lasting relationship with an OEM manufacturing company overseas. Our team is prepared to answer any questions or concerns you have about our future partnership.
Contract Manufacturing in China: 5 Ways To Mitigate Costs
For the past decades, manufacturing in China was a rather inexpensive process. Many overseas companies have outsourced their production to China.
But now, China has hiked up their production costs because of major and minor changes in its policies and regulations.
Overseas businesses should keep costs low to remain competitive in the market. That’s why we’ve collected this list of five ways for you to reduce your costs by using contract manufacturing in China. Let’s get started!
Costs Are Rising, But…
Despite these headwinds of rising costs, China’s manufacturing future remains bright and you shouldn’t miss out on the benefits.
While the country is losing its edge in some labor-intensive sectors, it is gaining strength by building more modern infrastructures and hiring more talents at home and abroad.
A quick look around Shenzhen tells you this is a different type of China. It’s a place that doesn’t need to be cheaper than anywhere else because it’s better than anywhere else. In this factory city, no one is thinking about cutting corners and doing things cheaply to compete with other countries. Instead, everyone is thinking about how to innovate and be more productive than any other country in the world.
Manufacturing costs may be higher, but you can get better quality products and customized services and support. In this regard, you can save your company a lot of money, time, and hassle.
Conduct A Manufacturing Cost Estimation
There are many things that you should be aware of before outsourcing manufacturing operations in China, conducting A manufacturing cost estimation is the main one.
As you know, overspending and underspending can lead to confusion, lower confidence, and many other negative outcomes. The right manufacturing cost estimation is essential to optimizing the manufacturing process and building value-driven product, which is capable of competing in the global market.
So it’s particularly important to figure out manufacturing costs associated with raw materials, product units, quality control inspection and shipment.
Use Design From The Contract Manufacturer
When it comes to industrial design, you will probably have a hard time.
As you may not be a design expert and you have no idea how to use CAD and build a prototype, and more importantly, you can’t start learning design from the scratch. You know your product design needs to be done by someone who has the skill set required for this task. So, you may want to hire an in-house designer to achieve a better appearance result. However, it may not be economically viable for small-business owners.
To cut costs, many businessmen would look for freelancers to help with their product design. But the problem is how to guarantee the result when your project is complex. You will end up in endless chats and files without getting things done.
You can count on your contract company which has a team of engineers and industrial designers working together for a certain project. They will work closely with you to create a well-designed prototype that can be used as a final product or can be modified to suit other requirements.
And the cost of product design is negligible comparing the production costs, estimated at around 5% of total expenses in your project.
Substitute Raw Materials
Don’t make the mistake of relying on the same raw materials for your products throughout the business’ life cycle.
That’s because raw materials are influenced by many factors that change over time, which can significantly impact your total costs and production deadline.
As a business grows, you need to consider producing the same or similar product with alternative raw materials, which are more economically sustainable for your business.
For instance, consider ways you may be able to recycle materials into new products or use less expensive substitute materials. These small changes can drastically help you reduce manufacturing costs.
However, this could be risky if you don’t plan and make the appropriate changes. So, make sure you know what materials are best suited for your product so that your goods are always meeting industry standards and customer expectations.
Conduct Quality Inspection
Maybe you’ve read a few stories about how an overseas business has reduced its costs by cutting down on quality inspection.
However, it’s not a good idea especially when you are running a big business and want to hold the company in long term. Using quality control offers you peace of mind.
That’s because when customers receive your product which is of low quality and defective, they will complain online and never come back to you again. You will lose your reputation and profits.
If you want to reduce costs but still need to check if your product meets your expectations, you can work with a third-party quality inspection company.
By hiring an experienced quality inspector to conduct regular checks throughout production, you can be sure that your products are safe for consumption.
Get Started with Contract Manufacturing Today
Using contract manufacturing in China is a smart move for your company, which helps to save costs and time. So you can focus on expanding your business.
When your company needs contract manufacturing services, come to Shield Works. Our experienced team helps to keep your project moving smoothly and efficiently. With our British management background and long-term manufacturing experience, we are so sure of our proven process and expertise we take the responsibility of protecting you from all manufacturing defects. Contact us to diss your project today!
Made in China: The Process of Product Assembly
Assembly lines began back in the 19th century in meatpacking factories. The famous Henry Ford used this idea as a solution to produce his widely known automobiles. Ford realized the benefits of a product assembly line as it decreased his costs dramatically, to both his own products and those of Ford customers.
As the demand for eCommerce grows, more companies are selling their products online. These products are being sold and then shipped from an external warehouse where products are assembled in massive quantities.
Keep reading to learn more about the process of product assembly, its benefits and challenges, and how China has become the greatest manufacturing superpower.
What Is Product Assembly?
Product assembly is the process of creating products in sequential steps. Each step has its own materials to put together in specific ways. All leading up to the final product.
This process was originally set up like a regular assembly line. It involves a number of workers standing in a line of some sort by a specific machine or piece of equipment. In some cases, they are sitting at a workbench with their own set of materials and tools.
Product Assembly Methods
You may recognize the classic assembly line as a large industrial-type room filled with different work stations or product lines. The workers are either sewing clothing, piecing together a television, and others.
The process of product assembly boosted the production of goods and manufacturing. This massively increased efficiency and decreased the amount of time it took to produce large quantities of products.
The higher the quality and the greater the availability of technology in modern times, the greater the need for a smooth process for businesses. There is also the perfecting of operations and mass manufacturing of products.
These manufacturing plants and warehouses involve a lot of detailed operations, management, and technicians to ensure the regular flow of systems. It becomes an entire business operation in itself and requires proper function.
Classic
The classic assembly lines using factory workers are still very much in place. However, switching to using large factories with heavy machinery has become more popular for big players in the field.
Automated
Through automated processes, different machines or large pieces of equipment are used to put a product together piece by piece at different stages. This was done to create an end product with great speed and efficiency.
Which Product Assembly Method Do I Need?
Depending on your product, the method of product assembly will differ. For example, there will be no need for something like weld assembly if your product is clothing. Ask yourself, is it large and complex needing automated product assembly or can it be done with a classic assembly line?
Also, is your product one that is shipped out fully assembled, or is it completed elsewhere? This refers to things like furniture that’s shipped to a storefront in pieces versus an automobile that you don’t expect a customer to complete themselves.
With product assembly, millions of products and goods are shipped across the globe daily. It has provided hundreds of thousands, if not millions, of factory jobs.
Assembly lines have grown to include large factories across the world, with the most manufacturing being done in China.
Product Assembly in China
China has perfected the product assembly line through decades of practice. They are trusted as the top manufacturing nation in the world for many reasons.
There is no requirement to employ highly-skilled workers. Unless it’s an engineered product, factories can usually hire many more people at low costs. It’s great for the plant as more workers means more hires and increased productivity and goods production.
China has also optimized on factories or manufacturing plants being concentrated to one industry. What this means is that textiles will be produced in one area and electronic parts in another. These are generally referred to as production clusters.
This process results in streamlined manufacturing for more goods in one place. It has really put China above the rest of the world when it comes to production.
What You Need to Know When Choosing to Produce in China
The most important thing to consider is to figure out what type of assembly is required based on your product. Are you looking to manufacture textiles? Is there a need for engineers in your assembly line, or do the steps require low capacity?
The process of the product assembly itself depends on the operations of the plant. This can also involve what type of product you have and which method of assembly you choose.
Is it line assembly where workers are assigned to each step in the process, whether it be quality testing at the end or checking for issues from the start? Your warehouse might have an inspection line in itself.
It’s important to think about production times. Take into consideration the product, type of assembly, and how these two can affect each other.
Research
Of course, for businesses, there is a lot of legal paperwork involved in selecting a product manufacturing plant in China. Additionally, agreements need to be made before any production begins and plans are finalized.
To ensure you choose the best option for you, be sure to research different manufacturing warehouses in China. Research can be done through looking through all their social media (if available). This will give you a sense of their following and their level of popularity in the community.
Another great way to do research would be by looking up company reviews. Do they have a lot of happy customers? Do they have long-lasting business relationships or testimonies? You can also research any news about the company.
Tour the Space
As a business owner about to invest in a manufacturing plant, there are structural and operational things to look out for too. Check the condition of their warehouse in terms of cleanliness, safety protocols, and more. Look at the size of the space and check out the quality. Given the current travel restrictions in China, it is unrealistic for many businesses oversea to physically pay a visit. Hire a qualified 3rd-party QC agent to perform factory audits for you.
If you notice some equipment is broken or sitting unattended ask questions. Be prepared to ask about how they operate. Do they only hire skilled workers, or are they open to having different skill levels of staff? Remember this might not be as important depending on your product.
Have a Trusted Source
Contracts should be laid out with every detail included to cover any possible scenario that could halt production such as delays. There need to be planned solutions for issues with unmet timelines or quality expectations.
Meet with your manufacturers before you make a choice. If you can, visit the warehouse or plant location to have a look for yourself. If not, you should have a liaison in China who can do this for you. A trusted resource to communicate issues and updates to you is beneficial.
The Benefits of Product Assembly in China
Over time, the quality of outsourced production has increased with more and more North American companies using warehouses in China for several reasons.
Production in China has much lower costs for higher reward. The cost of labor is lower so more employees can be hired. The production level is massive so products can be ready quicker resulting in more purchases.
There is no need to track down a manufacturing plant because they are so readily available in China. They are usually already operating for other companies as well. This removes the need for a business to build one themselves, which would require hiring your own staff and paying for your own space.
Choosing a China assembly service for manufacturing jumpstarts the process of product production. This means a quicker start to making revenue.
The Challenges of Product Assembly in China
With the efficiency and ready-to-go structure of a manufacturing space in China, there are some challenges.
There will be a need to have someone on your team to oversee general factory setbacks that may occur. Because you aren’t able to just drive over in an emergency, it would be good to have a contact who lives in that country. This could be the owner of the plant itself.
Communication is Key
It’s important to keep communication smooth, open, and at a steady pace. There could be things lost in translation or miscommunications that can cause very big problems. Imagine asking to change a part in assembly and it happens to be the wrong one?
Also related to communication, there could be massive time differences between your country and China. This can make it difficult to have regular communication. It could make it tough to have a good relationship with the manufacturer.
Depending on where you reside, China is across the world and in an entirely different country. This can make you feel very disconnected by the inability to be on-site regularly.
Ensuring your supplier of parts and materials are also openly communicating is crucial. This refers to communicating with the business owner and with the manufacturing plant. Issues can arise if parts aren’t being sent on time or are incorrect or missing.
Remember that some companies can be committing fraud. Keep an eye out for fake websites, no contact information, no reviews, or a location. There have been cases of companies accepting deposits or a related hold and backing out without contact.
Additional Challenges
In terms of shipping times, they will increase dramatically when your products are being outsourced from China. Standard shipping can take up to two weeks.
Take into consideration that production is so vast in China that it sometimes negatively affects the environment. The levels of air pollution from factories has only increased over the last few decades. But efforts have also been made to improve the air quality and the improvement is significant as well.
There is also the challenge of a lack of resources from the massive production in China. The availability of resources and materials in China to produce goods across these warehouses has dwindled.
In 2018, President Trump also enacted an increase in taxes on imports from China. This caused a riff in the relationship between production in China from US-based companies. Some actually moved their production out of China as a result.
The Future of Product Assembly in China
China has plans in place to continue holding its spot as the largest production superpower in the world for many years to come. With the growth of intelligent technologies and a never-ending need for low-cost manufacturing, this seems very likely.
There has even been discussion around using data from manufacturing plants to understand customer product needs. This can increase happy customers and thus potential revenue for businesses worldwide.
Contract manufacturing in China is on the rise. Think about how many products you buy that are ‘made in China.’ It’s no surprise that companies outsource their business in this country. The benefits certainly outweigh the cons outlined in this article.
Get a Consultation
Based in the UK, Shield Works has 16 years of experience outsourcing product development in China and product assembly on-site, fostering long-term relationships with their clients.
Its founders and leaders are experts in the field of manufacturing with direct connections and communication with China as partners of their business sphere. They have worked to assist both large and small businesses through the process of finding the best manufacturing facilities in China, while also supporting manufacturing in-house.
If you are interested in product assembly services in China, connect with our professionals in the product assembly and product manufacturing field for assistance. If you are manufacturing in-house and looking for a new space, we can help with that too.
The Power of Contract Manufacturing: How It Can Drive Down Costs and Increase Flexibility
The contract manufacturing industry is thriving globally due to its ability to drive the immense reduction in the cost of manufacturing goods and to grant companies increased flexibility faster than traditional methods.
In this article, we’ll take you through the primary reasons why contract manufacturing can deliver improved cost performance and production flexibility.
Reduce Labor Costs
Labor cost is a key element in the manufacturing industry. Typically, the labor is more expensive when you are from the developed world. So it makes more sense to outsource your production to China.
Depending on how far along you are in manufacturing your product, you may be paying upwards of 50-70% for labor costs.
When shifting to contract manufacturing, it’s typical to see those costs reduce by 30-50%. While lower costs aren’t guaranteed, there’s plenty of room for negotiation based on your volume requirements.
In some cases, companies have been able to negotiate down as much as 80% of their original labor costs. This is a massive saving that can help you create a more profitable business model from day one.
Reduced Capital Requirements
If you’re not ready to invest in building an in-house engineering team and buying expensive equipment, contract manufacturing is the best option to help you get a product to market with minimal risk.
You simply pay for services as needed rather than extra investment, otherwise, that will be a waste of having a facility with equipment that sits idle most of the time.
Some manufacturers may even let you use their machinery at fairly lower prices if you hold an order of larger quantities or have a good relationship with them.
Typically, a professional contract manufacturing company focuses more on improving efficiency. They have a pool of in-house specialized engineers because a company’s production efficiency obviously cannot be improved overnight.
Increase Inventory Flexibility
Since you are not tied to a specific factory, you can switch manufacturing plants at any time without having to change production plans. This gives you increased flexibility for where and when you buy raw materials as well as components needed for your product. In this case, you will never be stuck with too much or too little inventory if you have contract manufacturing.
Meanwhile, when you work with contract manufacturers, they handle all aspects of manufacturing including procurement and logistics.
The cost savings associated with using a third-party supplier is passed on to you in terms of lower prices. In addition, because these companies specialize in one aspect of manufacturing (such as PCB assembly), they do it better than anyone else in their field which means they can offer better quality products at competitive prices.
Increase Manufacturing Experience
If you choose a professional contract manufacturer who is specialized in what they do, you will be worry-free in many situations.
The most important one is that they usually have a customized plan for you to meet your needs in production, quality standards and lead time. It will be easier and more effective to get your project done.
The other excellent experience for you if you have a professional contract manufacturing firm is that they have one-stop supply chain services to deal with from sourcing, quality control, warehousing and shipping. With these services, you can save your time and money in finding other third-party companies for your business.
Manufacturing In China With Confidence
Contract manufacturing is only becoming more prevalent as time goes on. When your company needs contract manufacturing services, come to Shield Works. We take care of every aspect for you, so you can focus on innovation and launching products as quickly as possible.
With our well-established facility based in Zhuhai, Guangdong Province, we offer a range of services to accommodate your needs, from a one-time contract manufacturing and precision assembly to warehousing and fulfilment, without ever worrying about inventory or quality control. Our production process is streamlined, efficient, and optimized – so no matter what phase your business is in, we can take care of you.
We pride ourselves on excellent customer service and British background management experience. Contact us to find out how we can help with your project!
9 Tips For Running an Efficient Assembly Line
The assembly line first went into use around the 14th century in England. By the early 20th century, assembly lines were being used in production plants all across the United States. Not long after that, assembly lines began popping up in factories all over the world.
There are many reasons assembly lines have increased in popularity over the years. One reason is that they tend to be more efficient than other production methods. When done correctly, assembly lines can help increase productivity and decrease costs.
If you’re thinking about implementing an assembly line in your own factory, there are a few things to keep in mind. A single slowdown can cause a ripple effect that impacts the entire production process.
This blog post will discuss nine tips for running an efficient assembly line.
1. Have a Plan in Place
An assembly line is only as efficient as the plan that’s been put in place. Before starting production, you need to have a clear idea of what needs to be accomplished. This includes everything from setting targets to designing the workflow.
Once you have a plan in place, it’ll be much easier to keep the assembly line running smoothly. Furthermore, you need to make sure that everyone involved understands the plan. This way, they can all work together to achieve a common goal.
2. Set Realistic Targets
If you want your assembly line to be efficient, you need to set realistic targets. This means that you can’t expect it to produce perfect results every single time. There will always be room for improvement.
However, you can ensure that your assembly line is working as efficiently as possible by setting realistic targets.
One way to set realistic targets is to use a production simulator. This will allow you to test different assembly line scenarios and see how they impact the final product. Using a simulator lets you find the most efficient assembly line configuration for your needs.
Another way to set realistic targets is to track your assembly line’s performance over time. It’ll give you a good idea of what improvements are necessary. You can also use this data to make predictions about future assembly-line efficiency.
3. Communicate With Your Team
Your production line is only as efficient as the people running it. That’s why it’s important to communicate with your team and make sure that everyone is on the same page.
One way to do this is to create a production schedule. This will help everyone know what’s needed of them and when. You can avoid assembly line disruptions and keep the assembly line running smoothly by having a schedule.
Additionally, hold regular meetings to discuss assembly line problems and brainstorm solutions. It’s also a good opportunity to give feedback about the assembly line’s performance. It’ll ensure everyone is working to improve performance and assembly line efficiency.
4. Implement Quality Control Measures
If you want your assembly line to be efficient, you need to ensure that its products are of high quality. You can achieve this by implementing quality control measures.
One way to do this is to have each product inspected before leaving the assembly line. This way, you can catch any defects and fix them before they cause problems further down the line.
Another way to improve quality control is to use assembly line robots. These robots can be programmed to spot defects and remove them from the assembly line. This helps to ensure that you only make products that customers love.
5. Minimize Part Count
One way to keep an assembly line moving smoothly is to reduce the number of parts that need handling.
You can do this by incorporating more components into each part or redesigning the product so that fewer parts are necessary. Assembly line workers will appreciate having fewer parts to deal with, and it’ll help keep the line moving at a steady pace.
Additionally, reducing the part count can also lead to reduced product assembly costs. So it’s a win-win for both the assembly line workers and the company’s bottom line.
6. Use Modular Components
Another way to reduce the part count is to use modular components. This means that you can use each component in multiple products. For example, a company that manufactures car seats could use the same basic seat frame in their standard and luxury models.
This approach has several benefits. First, it reduces the number of unique parts that you need to stock.
Second, it allows assembly workers to become more familiar with the components. This leads to increased productivity and efficiency. Also, it’ll lead to a reduction in assembly costs.
7. Improve Ergonomics
One way to make assembly line workers more productive is to improve the ergonomics of the assembly line. This is possible if you ensure workers have the proper tools and equipment to do their jobs.
Make sure that the assembly line design allows workers to work without having to reach or bend too much. Additionally, assembly line workers should get breaks regularly to avoid fatigue.
Improving ergonomics on the assembly line can lead to increased productivity and fewer errors. Additionally, it can help to reduce the number of workers who experience injuries on the job.
8. Implement Quality Control Checks
Another way to increase production line efficiency is to implement quality control checks.
These checks can help ensure that products are assembled correctly and that there are no defects. Quality control checks can be performed by assembly line workers or separate quality control teams.
This process can help improve the quality of products and reduce assembly time. It’ll help identify assembly line problems, which allows you to fix them before they cause major issues.
9. Use Assembly Line Software
There are many assembly line software programs available that can help to improve efficiency. These programs can track assembly progress, schedule workers, and perform quality control checks. Additionally, some assembly line software programs can also automate assembly tasks.
Using assembly line software can help you optimize the assembly process and make it more efficient. Additionally, it can help you track assembly progress and identify issues so you can fix them quickly.
How to Run an Efficient Assembly Line
There are many ways to improve assembly line efficiency. By following these tips, you can increase productivity and quality while reducing assembly costs. Implementing even a few of these tips can significantly improve your assembly line’s performance.
Did you find this article informative? Now that you know what goes into improving your assembly line, please contact us to learn more about our assembly line solutions.
The Benefits of Using a Contract Manufacturer
Manufacturing continues to grow throughout the years and has become incredibly profitable. Did you know that manufacturers contribute about $2.71 trillion each year?
If you’re thinking about using a contract manufacturer, you might wonder if it’s worth it. There are several benefits to using one, and some might surprise you! Read this guide on the various benefits of using a contract manufacturer today.
Keep Costs Low
Contract manufacturing is a great way to reduce the cost of your services and products. This is because there’s a lower chance of errors. You can also benefit from bulk purchasing and skilled labor.
All of this can lead to satisfied customers since you can lower the cost of goods. Manufacturing businesses specialize in high-volume production lines and cutting costs.
This means that you can focus on running your business instead of worrying about production or making errors. Many companies are experts in their field and what they sell, but they struggle with the production process. That’s where a contract manufacturer comes in.
Save Money
Did you know that manufacturing accounts for 12% of the U.S. economy? You’ll be able to save money since you won’t have to worry about buying equipment for production. Skilled laborers will already have the equipment that you need.
If a product is high in demand, a manufacturer can focus on decreasing the time that it’ll take.
Test Products
You can test products before they’re in the hands of your customers. This is a great way to save money by not producing a defective design.
Determine what the needs of your business are since each manufacturing company could offer different services. They can also make changes to the product as necessary.
They can improve the products, increase the production rate, and give you great profit margins.
Professionalism
Product manufacturing companies will provide you with products without errors. This will help the reputation of your company.
Some companies will try to do production on their own and then make a grave error. Let a manufacturer perform production and watch your production rates increase.
They can also bring fresh, new ideas to your products. Manufacturers are experts in design and can help your product shine.
Improved Efficiency
Many manufacturers learn how to reduce waste. They can perform various tasks such as painting, machining, difficult assembly, welding, etc. This can help reduce the manufacturing costs for your company.
Manufacturing companies can also provide you with more flexibility. Whether you’re looking to scale production, develop products at the same time, etc.
You can start and schedule projects when it makes the most sense for your business. You’ll also know that they’re using the top-of-the-line equipment in the company to provide you with high-quality products.
Save Resources
Since they’re knowledgeable about reducing waste, you can lessen your carbon footprint. This also means fewer costs for you.
Your staff will have more time to work on business tasks. You can focus on your business, marketing, etc.
If you wanted to do production yourself, you’d need to hire a large staff. This could include operators, engineers, managers, etc.
Whereas contract manufacturers already have their staff in place. You’ll have a large team working on your products without having to worry about shifts, payroll, or hiring workers.
Sell Your Products Sooner
Since managers can create your products fast, you can get your products out there to the consumers quicker. There are different methods such as CNC machining and Rapid prototyping that can help speed up the process.
You might be able to get your products out there in a few weeks!
Various Options
They can handle various aspects of the manufacturing process. These can include material purchases, product design for manufacturing, assembly, packaging, etc.
Since everything is happening under one roof, it reduces costs for you. They’ll handle the difficult parts of the manufacturing process so you as a business owner can have less stress.
Deadlines and Estimates
You’ll know in advance how much to budget for the process. They’ll provide you with a detailed estimate before they begin.
This will make it less likely that you’ll experience delays or unexpected costs. They’ll also be able to tell you how long it should take.
Improved Communication
If you try to have the product manufacturing process internally, you’ll need to contact multiple vendors at all times. Through contract manufacturing, you’ll be able to stay in communication with them. You won’t have to worry about a response.
Who Can Benefit From Manufacturing Contract Companies?
Most businesses can benefit from contract manufacturers. You might decide to use product assembly services in China since it’ll save your business money. Keep in mind that how skilled a manufacturer is will vary.
Some ways they can help include:
- Packaging products
- Manufacturing products manually
- Product assembly
- Creating computer models of products
- And more
When you’re first starting out with a production company, it’s a good idea to test out a contract manufacturer. See how their production process is and if it slows you down. You might find that you’ll have more time to focus on your business and productivity will increase overall.
Understanding the Benefits of a Contract Manufacturer
After exploring this guide, you should have a better idea of the benefits of a contract manufacturer. Take your time deciding if it’s right for your business.
Are you ready to speed up the process of manufacturing in your business?
Contact us today! We offer customized manufacturing, including developing new processes, using top-notch equipment, and customizing work procedures.
How To Evaluate A Product Assembly Company In China: 5 Strategies To Success
As the global pandemic is continually spreading, and China insists on the zero-Covid strategy, it’s getting harder for many overseas businesses to find a product assembly company for their products.
Thankfully, you don’t have to go at it alone. Here are five strategies that will help make finding the right assembly partner much easier.
Experience
Experience is an important factor to consider when reaching out to an assembly supplier.
Nearly all of the assembly suppliers claim that they have relevant experience in dealing with any type of product so you have the confidence to work with them. But remember, some assembly companies are better at certain types of products than others. It’s better for you to partner with those who specialize in your product.
In this case, you should be careful to identify if they are telling truth. Try to clarify the questions below:
- When did the assembly plant start?
- How many engineers do you have?
- What are the processes to assemble my product?
- Have you worked on a similar project before? What was it like?
- Have you worked with an overseas business?
By answering these questions, you can figure out if the information provided to you is relevant, up to date, and available in real-time.
Capacity
The second thing you need to do is to assess your potential assembly partner’s capacity.
You don’t want to send your product and money somewhere it will sit on a shelf or in a warehouse waiting to be assembled. To ensure you won’t get stuck with products that aren’t being assembled as fast as they can, make sure you know exactly how much production space your assembly partner has is available.
If you have any concerns about their ability to meet your demand and requirements, ask them directly about their current output rate and deadline.
Don’t risk losing out on profits by making an assembly partner overburdened with your orders—go with someone who knows what they are doing.
Certifications
Not all China product assembly companies are created equally.
No matter how well-established the assembly plant is, there still may be a possibility that they don’t have proper certifications and licenses.
So, if you are concerned whether your product is being produced and assembled in compliance with regulatory standards, ensure your supplier has the relevant business licenses to operate their facility as well as any relevant compliance certifications to manufacture and assemble your product.
Here are some common ISO certifications, including:
- ISO 9001:2015: Quality Management Systems
- ISO 14001:2015: Environmental Management Systems
- ISO 45001:2015: Occupational Health And Safety
- ISO 14001 – Environmental Management
Each product or industry requires different kinds of certifications. So Each product in China requires a different kind of certificates and documents. So, always ask to check the required materials for assembling your product before any order confirmation.
Language Proficiency
One of the biggest headaches for overseas businesses to find an assembly supplier is language.
Consider working with those who have English background and speak English fluently. Although now more and more Chinese people speak English, it’s still possible to lead to misunderstanding certain points.
Therefore, remember the two principles when communicating with Chinese suppliers:
- Open – Though you and your supplier speak the same language, there is a gap in knowledge and logic that leads to misunderstandings. So try to be open and straightforward in your conversation to make both sides on the same page.
- Precise – Precision communication is fundamental to a long-term partnership. Describing your needs and requirements precisely can reduce the workload for both parties.
Services
Assembly service providers have traditionally relied on low-cost to gain a competitive edge.
But times have changed.
Nowadays, the costs of labor and land are no longer as cheap as before. More and more assembly plants are offering tailored service and support so these can be key considerations when partnering with an assembly company.
There are some assembly companies offering one-stop services from quality inspection and testing to warehousing and fulfillment, which release you from finding other services one by one.
About Shield Works
Finding a reliable and professional product assembly partner will help to boost your business by avoiding high-defect rates and unexpected delays.
Shield Work, a leading product assembly service provider in China, is ready to help you assemble your products with our well-established facility. Contact us to discuss your project today.
Electrical Assembly In China: 5 Things You Should Need To Know
If you’re looking to assemble your products in China and want to do it as cost-effectively as possible, then it’s important to find the right assembly partner before you get started. Doing so will help you stay on track and keep your costs low without sacrificing quality or speed of delivery.
However, how do you find the right assembly partner? How can you be sure they have all the equipment they need? What should you pay attention to when interviewing them? Keep reading to learn 5 things that you need to know when finding the right assembly partner in China.
1) Get Ready – What Information Do You Need?
Before you begin your search for a reliable assembly partner, there are a few things you’ll need to prepare.
If you don’t know what kind of electrical assemblies your company needs, you won’t be able to find a viable assembly partner. So, make sure what electronical assembly service you will need for your products.
Typically, there are 5 electronical assembly techniques:
- Wiring
- Wiring harnesses
- Connectors
- Clamps
- Switches
If you know exactly what you want your supplier to do and how much it will cost per piece, then you should have no problem finding a great Chinese assembly supplier.
2) Where Do I Start – How Can I Approach Vendors?
When seeking out an assembly partner in China – something that may seem easy on paper – you’ll face many obstacles along your way.
As you may know, they’re a lot of fraud factories in China. When a factory knows it will be completely shutting down, its owner will take back the case without noticing their foreign clients. Because they know you are far away from them and you can not check their account.
So try to work with those who are searchable online. Click to their websites and social platforms and read about their reviews and case studies.
You can also go to some online forums to ask someone that has worked with a good electronical assembly company for more information.
Before diving into your hunt, there are 5 questions you should ask:
- Wha’s your budget?
- What type of product do you want to be made?
- What material do you want to use?
- How much time do you have before production begins?
- How large of a batch will you need to produce?
3) What to Look for – How Can I Evaluate Vendors?
A good electrical assembly vendor will have an assembly facility that can assemble your items with precision and quality.
However, if a vendor claims that they have a team of professional engineers and skilled workers to charge more, you should be careful with that. Some vendors in China may not even have factories, and they outsource all of their orders.
So, when you evaluate a vendor, it’s better to visit their facility in person. In this case, you will have a better understanding of such elements:
- Physical environment: size, layout, equipment and manufacturing capabilities
- Working condition: workplace safety and mode
- Culture: departments and working hours, certifications
Plant tours are one of the most valuable activities you should do before partnering with a potential assembly vendor, especially if you want to work on large-scale projects with them.
4) Prepare Yourself – Can You Manage the Process?
Before going through with an electronical assembly company, you will have to make sure that you are capable of managing your supplier.
What does that mean?
If you are a business owner and you are not familiar with all aspects of electrical assembly, it will be quite hard for you to learn everything step by step. In this case, it is a good idea to contact a professional agency or experienced consultant who can help guide and educate you on what goes into setting up an electrical assembly operation.
And understanding that there are language barriers when working with your supplier is inevitable since most factory owners do not speak English well. So try to keep your requirements simple to be understood for both sides.
Also, maintaining relationships with your product assembly company is essential in China. Earning your supplier’s trust and involving them in your project from the earliest stages ensure they become a strategic partner, which is vested in the project’s success.
5) What Next – After I’ve Signed an Agreement?
Now that you have compared some potential suppliers and you are about to finalise a perfect one for you, what’s next?
At this stage, you should learn more about the agreement.
If you have an IP right on your product, make sure that your supplier has a non-disclosure agreement to safeguard your trademarks or logos.
Let Shield Works Be Your IP Protective Manufacturing Partner
Our assembly service at Shield Works is a combination of reliability, cost-efficiency, and punctuality.
With our British ownership and management background, we have full capacity to help our overseas clients to assemble their products without IP rights risks.
Our product assembly team is so skilled and experienced that we can guarantee 100% satisfaction. Contact us to discuss your project today.
How to Choose the Right OEM Manufacturers in China
Do you have a new product that you want to sell for your company, but you are unsure what type of manufacturer to use? Have you decided to use a manufacturer in China, but you aren’t sure what type of manufacturers are available? Most people don’t know that there are OEM manufacturers in China in addition to ODM manufacturers.
So what is the difference between the two? We will give you a hint; one provides more protection and more specification help than the other. They are both excellent options to bring your products to the market, but you should be aware of a few other key differences. This brief manufacturing guide will cover the difference between the two and who you can contact for more information.
What is OEM Manufacturing?
Before we get into what OEM Manufacturing is, we must first define what OEM is. OEM stands for Original Equipment Manufacturing, and it is a form of outsourced manufacturing. OEM factories have the capabilities to manufacture products according to your unique specifications and designs.
Before an OEM manufacturer can produce your product, you must complete your research and development. This includes engineering, market research, and design.
Once you have all the components of your product down in writing, you can then reach out to an OEM manufacturer to create your products in bulk. The original equipment manufacturer will set up the production of your product to make sure that they can produce the product on time, on quality, at your designated budget.
Advantages of OEM Manufacturing
One of the most significant advantages of OEM is the fact that you have complete control over your intellectual property. This is a huge deal, especially if you have a breakthrough project and you choose to ship your production services overseas.
When you control the research and development of your product, you have complete control over your intellectual property. This gives you better bargaining position and makes it easier to switch to another supplier if you need to. Even though you have full control of your intellectual property, it is best to protect it at all costs.
Specialized Technology
If you don’t have the right expertise or equipment to create certain parts of your product, you can depend on your OEM to have it for you. It is best to take advantage of the technology offered by your OEM manufacturer to complete your project. Access to this type of technology and expertise ensures that the manufacturer will create your product with top-tier quality.
Cost-Effective
When you partner with OEM manufacturers in China, they can streamline the process of creating your product in large volumes. China is also well known for its efficient supply chains, making it cheaper to produce your product. This provides your business with higher profit margins, more revenue, and increased sales.
Disadvantages of OEM Manufacturing
One main disadvantage of using OEM manufacturing is a limited selection of suppliers for certain specialized items. Most OEM manufacturing companies prefer to work with businesses that create a lot of demand, so if you don’t sell your goods fast, they most likely won’t work with you.
Risk of Infringement
Because you are sending your items to a company to create your product, there is a risk of infringement. It is important to note that every country has its own rules and regulations for intellectual property. If you aren’t diligent in protecting your product, you risk someone selling your components to your top competitors.
No Troubleshooting
Once you have your specifications down and send it over to the manufacturer, they will create your product based on what you send. This means that they won’t troubleshoot or correct any faulty designs as they produce your items. They will only manufacture based on what they have from you.
What is ODM?
Original Design Manufacturing, also known as ODM, is another form of manufacturing. Unlike OEMs, ODMs provide product development services, and depending on the company; they can help you with the entire product lifecycle. The exact scope of what an original design manufacturing company can do differs from company to company.
Let’s say that your company has an excellent idea for a gaming console. You did your market research and found an opportunity to create a low-priced gaming console of decent quality in China.
You and your team will need to develop some features you want the console to have, but you don’t necessarily have any specifications or technical drawings. If you want a gaming system that meets your requirements, you can reach out to an ODM to fulfill what you need.
Your ODM company can help you create specifications and new designs based on your idea. The ODM may already have its own product lines that you can customize if you would like.
Advantages of ODM
One significant advantage of using original design manufacturing companies is that you don’t have to make substantial upfront investments. You won’t have to pay for any tooling; the ODM will take care of that.
Technical Resources
With an ODM, you don’t need technical resources that provide detailed specifications and designs. Instead, the ODM will handle all of that for you. Many Amazon FBA sellers prefer to use ODMs to create and sell their products quickly.
Quick Turnaround
ODM companies don’t worry about testing, developing, or researching a product. They usually have already created products that they can rebrand for your business. To ensure you don’t run into issues with another company claiming that you copied their idea, the ODM will handle making sure the product uniquely links to your company.
Least Expensive Manufacturing Route
Testing and designing a product takes a lot of time and requires a decent amount of capital. When you partner with an ODM manufacturer, you have the opportunity to save money while you focus on the core aspect of your business.
Reliable Products
Depending on your product, certification is typically required before your product can hit the market. To ensure that your product meets quality requirements, ODM manufacturers will handle all quality testing and inspections. They will also get the proper product certificates you need before selling your product.
Disadvantages of ODM
Although these manufacturers provide you with a quick and easy way to create a product for your business, working with them can make it harder to stand out from the competition. Your manufacturer will sell the exact product you create to other companies with minor alterations.
Even if you manage to make significant sales volumes, your ODM most likely won’t honor your changes if your customers request customizations or upgrades. Most manufacturers don’t develop new products, especially if a specific product requires a full or a partial redesign.
No Intellectual Property Rights
Because your manufacturer designed, tested, and developed these products, they own the item’s intellectual properties. This means that you have no control over the ODM’s legal decisions about the product.
You also have no control over who the supplier sells the item to. There is a chance they could sell your product to another competitor.
There is also a chance that the item you buy from your ODM could be another company’s intellectual property. If you are unaware of this and you sell your product on the market, you’re at a risk of facing a lawsuit.
How to Find an OEM or ODM Manufacturer in China
Choosing an OEM manufacturer in China can be an overwhelming experience. There are hundreds, if not thousands, of manufacturers in China who can help bring your product to life.
The best way to find the proper manufacturer for you is to look up some and make a list of those you like best. There are certain companies that have high-quality components, quick turnarounds, and high customer service ratings.
Shortlist Your Companies
Once you have a list of companies you may want to work with, it would be best to shortlist them. Look over each company’s length of time in business and see if they specialize in the component you need.
Other essential details to look over:
- Certifications the company has for their production capability
- Business licenses
- If the company has already exported products to the United States
- Their minimum order quantity (MOQ)
If you like a company but have questions about its qualifications, check out its reviews. Most previous clients will rate the company and put what they did or did not like about them. The best way to find out if they have what you need is to contact them.
Review Their Credentials
Even if a company tells you that they have the right qualifications, it is better to verify those credentials to ensure that they are actually a legitimate company and not a middleman. There are many ways to verify this information.
For one, you can ask the company for their audited accounts, ask for product samples, or you can check their Value Added Tax Invoice. You can also ask for the Chinese name of the factory, the location of the factory, and the local government office assigned to the factory. The government office should have a copy of the factory’s registration and license records which you can use to verify their details.
Workplace Rights
Unlike the United States, there are many countries that do not have protocols in place to protect their workers. This means that some workers may not receive adequate breaks or time to get food. Some of these people work for more than eight to twelve hours a day without reasonable pay.
When sourcing the proper manufacturer for your company, make sure that you work with an ethical company. The last thing you want to do is partner with a company that does not care about its employees. Don’t spare efforts on researching their track records.
Hiring a Sourcing Agent
The most significant advantage of hiring a sourcing agent is that they can verify and identify different manufacturers on your behalf. These people have extensive networks of partners and in-depth knowledge of the sourcing market.
There are many companies that have sourcing agents on staff who can serve as the liaison between you and their manufacturer. They are able to speak to you in your native language while being able to translate for their company.
Visit the Manufacturers
If you aren’t able to visit the manufacturers yourself, you can use a sourcing agent to do that on your behalf. If you can take a trip out to China, you should go to check out the different available manufacturers.
When you go in person, you can see the facility first-hand and meet with key personnel at the manufacturing facility. While you are there, you can better explain the specifications of your product and if they can handle that for you. Visiting in person also lets the manufacturer know that you are serious about working with them to create your product.
Build Your Product With Confidence
There are many different ODM and OEM manufacturers in China that can bring your ideas to life, but which of the two is the better option for you? Choosing the proper manufacturer for your business needs shouldn’t be a complicated process, and that is what we are here for.
If you need help deciding between the two or if you are set on working with an OEM manufacturer in China, contact us now. Our team is fully prepared to answer any questions or concerns you have about our process!